This paper studies the links between productivity, innovation and research at the firm level. We introduce three new … features: (i) A structural model that explains productivity by innovation output, and innovation output by research investment … of firms engage in research activities and/or apply for patents; productivity, innovation and research are endogenously …

We embed the innovation production function in a model that analyzes the impact of innovation output on manufacturing … revenue approach enables a 'demand-shift' interpretation of the contribution of innovation to MFP growth. We apply different … sets of instrumental variables and different estimation methods to estimate simultaneously the returns from innovation …

Using data from a survey of 769 firms, this paper provides empirical evidence of the nature of innovation and its … are clear differences in the innovation profiles of the three sectors, which suggest that KIBS cannot be analysed as an …